The Reserve Bank of India has decided to provide the liberty to the banks to tap repo window. The apex bank took this step in order to minimize the risk of instantaneous fluctuations in the interest rates. From 10th February, 2012 onwards, the banks will be allowed to borrow from RBI on reporting Friday's from 4.30 P.M. to 5.00 P.M. "Overnight money market rates become volatile on reporting Friday's", said Mr E. Srinivasa Reddy, Dealer, Andhra Bank. He also said, "The RBI's move will curtail this interest rate volatility."
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